Besides the transfer fee, are the other fees paid to The Standardx refundable?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the transfer fee, all fees are non-refundable. In some cases we might negotiate some of the fees that some franchisees will pay, such as franchisees agreeing to develop multiple Brand Hotels or acquiring existing Brand Hotels. Otherwise, except as described below, all fees are uniform or are calculated on a uniform basis. There currently are no franchisee advertising cooperatives in the Brand Hotel network.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, most fees are non-refundable with the exception of the transfer fee. This means that franchisees should carefully consider their financial obligations and projections before committing to any payments, as these funds are generally not recoverable.
This policy is fairly standard in the franchise industry, as most franchisors consider fees to be compensation for services rendered or costs incurred. The non-refundable nature of fees underscores the importance of due diligence and careful planning before investing in a The Standardx franchise. Franchisees should fully understand the terms and conditions of the franchise agreement, including all fee obligations, before signing.
While the FDD specifies that most fees are non-refundable, it also mentions that The Standardx may, as it deems appropriate, reduce or refund FIP (Franchise Improvement Program) fees based on improved performance and/or accelerated compliance with hotel renovation requirements. Furthermore, under the FIP and BPP (Brand Performance Program) policies currently in place, Brand Hotels are eligible for up to a 100% reduction of the applicable FIP or BPP fee, based on improvement in performance. This provides a potential opportunity for franchisees to recover some fees if they can demonstrate significant improvements in their hotel's performance and compliance.